The document discusses challenges and best practices for Internet of Things (IoT) initiatives based on a survey. Only 26% of companies report successful IoT initiatives. Collaboration between IT and business units, internal IoT expertise, and technology-focused culture are keys to success. IT and business executives differ in their perceptions, with IT placing more importance on technologies and business on strategies and processes. Common challenges include time, data quality, expertise, integration, and budgets. Successful organizations engage partners across all stages of IoT projects. Data from IoT projects can improve products, decisions, costs, customer interactions, and downtime. Most companies believe they have just begun realizing IoT's potential.

1. May 2017
Challenges, Breakthroughs, and Best Practices
The Journey to IoT Value

2. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
The Internet of
Things is nearly as
indispensable as
the Internet itself

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Yet in the IoT world,
smooth sailing is
rare
26%
of all surveyed companies
are successful with their
IoT Initiatives
Only…

4. Among the most successful, key best practices emerge
Collaboration
between IT and
the business
IoT expertise:
internal & external
partnerships
Technology-
focused culture

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Between IT and Business, perceptions vary
35% 15%
considered their
initiative a complete
success
Place more importance on:
• Technologies
• Organizational culture
• Expertise
• Vendors
considered their
initiative a complete
success
IT Executives Business Executives
Place more importance on:
• Strategy
• Business Cases
• Processes
• Milestones

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What is slowing IoT
progress?
Time to
completion
Quality
of data
Internal
expertise
IoT
Integration
Budget
overruns

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As complexity
mounts, partnerships
are critical
Believe that IoT initiatives look
good on paper, but prove more
complex than expected
60%

8. 46% 45%
50%
43%
53%
29%
60%
54%
58% 55% 58%
39%
Strategic planning Design and
architecture
Implementation
and deployment
Ongoing
management and
maintenance
Technical consulting
or support
Data analytics
Less successful
organizations
Most successful
organizations
The most successful organizations engage the IoT partner
ecosystem at every stage

9. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Successful IoT
initiatives drive
smart-data windfalls
Of organizations are using
data from IoT projects to
improve their business:
73%
Improved product
quality or performance 47%
Improved
decision-making 46%
Lowered
operational costs 45%
Improved or new
customer interactions 44%
Reduced maintenance
or downtime 42%

10. © 2017 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
Even in failure,
opportunities arise
Agree that learning from stalled
or failed initiatives help
accelerate their IoT investments
64%

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The opportunity
is limitless
Believe they have barely begun
to scratch the surface of what
IoT can do for their business
61%

12. Methodology & Respondent Profile
Methodology
Web-based survey, conducted among 1,845 IT and
Business Decision Makers (ITDMs and BDMs)
Fielded: April 2017
45%
38%
4%
12%
Executive Director Sr. Engineer/
Architect
Manager*
*Includes City Manager for Local Government industry.
46%
Mid-Market
56%
Enterprise
Qualification Criteria
• Must work in an organization with 100+ employees
• Must qualify as an IT or Business Decision Maker
• Must work at an organization that is in the process of or has
already completed IoT initiatives
• Must be involved in the overall strategy and direction for at least
one of their organization’s IoT initiatives
Industries
Retail /
Hospitality
Energy Transportation Manufacturing Local
Government
Health
care
IT Responsibility
55% ITDM 45% BDM
Top Departments:
• Operations
• Marketing
• HR
• Management
• Sales
• Research & Development
Job Role
Company Size

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